[Overpaid Slacker]

Amir --
With the IRS or any gov'tal agency, document EVERYTHING. Get the names and ID numbers of everyone with whom you speak, and if you believe something is resolved (as it was during your call identifying the problem) ask for a fax number and draft a letter memorializing what you've agreed to. Fax it to them, requesting they initial/countersign agreement and acknowledgement and fax it back. They will likely not return the document, but you'll have a contemporaneous record of the agreement and evidence of delivery, which is far better than nothing.

I've had similar frustrations with IRS; they don't obey the ordinary rules because they don't have to. period.

JP